Meta Platforms, the company behind Facebook and Instagram, delivered first-quarter financial results on Wednesday that surpassed Wall Street projections, though the tech giant simultaneously raised its capital investment outlook for the coming year.
During the first three months of 2024, the social media company generated profits of $26.77 billion, translating to $10.44 per share – a substantial 61% increase from the $16.64 billion, or $6.43 per share, recorded during the corresponding period in 2023. Total revenue climbed 33% year-over-year to reach $56.31 billion. Wall Street analysts had anticipated earnings of $6.67 per share with revenues of $55.6 billion, according to FactSet Research data.
“We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs,” CEO Mark Zuckerberg said in a statement. “We’re on track to deliver personal superintelligence to billions of people.”
Looking ahead to the second quarter, Meta projects revenues will fall between $58 billion and $61 billion, which aligns closely with analyst predictions averaging $59.48 billion.
The company has revised its annual capital expenditure projections upward to a range of $125 billion to $145 billion, marking an increase from its earlier forecast of $115 billion to $135 billion. Meta attributed this adjustment to anticipated higher component costs and additional expenses related to data center operations.
During Meta’s previous spending forecast announcement at year-end, the company explained that increased investments in Meta Superintelligence Labs initiatives were driving the year-over-year growth. The company has since announced plans to eliminate approximately 10% of its staff – roughly 8,000 positions – while simultaneously expanding investments in artificial intelligence infrastructure and recruiting high-compensation AI specialists.
As of March’s conclusion, Meta employed nearly 78,000 people, representing a modest 1% increase from the previous year.
Following the earnings announcement, Meta’s share price declined by more than 6% during after-hours trading.
